2019 -- H 6022

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LC002329

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION -- TAX SALES

     

     Introduced By: Representatives Vella-Wilkinson, Millea, and Almeida

     Date Introduced: April 24, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-9-8.3 and 44-9-25 of the General Laws in Chapter 44-9 entitled

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"Tax Sales" are hereby amended to read as follows:

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     44-9-8.3. Sale of owner-occupied residential property to housing agency.

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     (a) Where the property subject to tax sale is owner-occupied residential and contains

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three (3) or less units, the Rhode Island Housing and Mortgage Finance Corporation shall have a

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right of first refusal to acquire the tax lien at tax sale, and may assist the owner to discharge the

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lien or take title and acquire the property in its own name pursuant to regulations to be developed

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by the corporation, consistent with its purposes. The corporation shall notify the collector of its

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intention to exercise this right by the later of: (i) thirty (30) days from its receipt of the certified

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mail notice set forth in § 44-9-10; or (ii) ten (10) days before the date of sale or any adjournment

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of the sale. Failure of the corporation to notify the collector as provided herein shall extinguish

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the right of first refusal provided in this section.

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     (b) There shall be an advisory board consisting of six (6) members: one person appointed

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by the Rhode Island League of Cities and Towns; one person appointed by the Consumer Credit

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Counseling Services of Rhode Island Rhode Island Housing Resources Commission; one person

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appointed by Rhode Island Legal Services; one person appointed by the Housing Network of

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Rhode Island, one appointed by the Urban League of Rhode Island Omni Development

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Corporation and one appointed by the Center for Hispanic Policy and Advocacy. The advisory

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committee shall provide advice and recommendations to the governing board of the Rhode Island

 

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Housing and Mortgage Finance Corporation regarding that corporation's activities under this

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section. The members of the advisory board shall receive no compensation for the performance of

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their duties, but may be reimbursed for reasonable expenses incurred in carrying out their duties.

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     44-9-25. Petition for foreclosure of redemption.

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     (a) After one year from a sale of land for taxes, except as provided in §§ 44-9-19 -- 44-9-

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22, whoever then holds the acquired title may bring a petition in the superior court for the

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foreclosure of all rights of redemption under the title. The petition shall set forth a description of

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the land to which it applies, with its assessed valuation, the petitioner's source of title, giving a

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reference to the place, book, and page of record, and other facts as may be necessary for the

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information of the court. Two (2) or more parcels of land may be included in any petition brought

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by any purchaser of a title or titles, if the parcels are in the same record ownership at the time of

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bringing the petition (Form 5).

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     (b) No more than one foreclosure petition may be filed for each tax deed regardless of the

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number of tax title holders having an interest under such deed. If more than one petition is filed,

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the petitions shall be consolidated for hearing by the court. The court shall not award more than

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one attorneys' fee to the petitioners.

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     (c) Notwithstanding the provisions of subsection (a) of this section, no petition for

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foreclosure of redemption shall be filed or entertained by any court with respect to any property

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or title acquired by the Rhode Island Housing and Mortgage Corporation pursuant to § 44-9-8.3

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of the general laws until after five (5) years from the sale of said property or title for taxes.

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     (d) Notwithstanding the provisions of subsection (c) of this section, Rhode Island

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Housing and Mortgage Finance Corporation may bring a petition for the foreclosure of

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redemption after one year from the sale of the property for taxes where:

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     (1) Subsequent to or within sixty (60) days prior to the Rhode Island Housing and

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Mortgage Finance Corporation’s acquisition of the property or title, the interest of the owner-

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occupant in the property has been foreclosed by a mortgagee and a foreclosure deed has been

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entered in the records of land evidence for the municipality where the property is located and the

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property is no longer owner-occupied or occupied by a lawful tenant; or

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     (2) The property has been abandoned, as determined in accordance with § 34-44-.

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     SECTION 2. Section 44-5.1-3 of the General Laws in Chapter 44-5.1 entitled "Real

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Estate Nonutilization Tax" is hereby amended to read as follows:

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     44-5.1-3. Imposition of tax.

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     (a) Providence. The city of Providence is empowered to impose a tax upon the privilege

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of utilizing property as vacant and abandoned property within the city during any privilege year

 

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commencing with the privilege year beginning January 1, 1984, and every privilege year

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thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

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     (b) Pawtucket. The city of Pawtucket is empowered to impose a tax upon the privilege of

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utilizing property as vacant and abandoned property within the city during any privilege year

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commencing with the privilege year beginning January 1, 1997, and every privilege year

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thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

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     (c) Cranston. The city of Cranston is empowered to impose a tax upon the privilege of

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utilizing property as vacant and abandoned property within the city during any privilege year

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commencing with the privilege year beginning January 1, 1997, and every privilege year

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thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

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     (d) North Providence. The town of North Providence is empowered to impose a tax upon

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the privilege of utilizing property as vacant and abandoned property within the town during any

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privilege year commencing with the privilege year beginning January 1, 2001, and every

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privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

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or public laws.

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     (e) East Providence. The city of East Providence is empowered to impose a tax upon the

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privilege of utilizing property as vacant and abandoned property within the city during any

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privilege year commencing with the privilege year beginning January 1, 2000, and every

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privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

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or public laws.

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     (f) Woonsocket. The city of Woonsocket is empowered to impose a tax upon the

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privilege of utilizing property as vacant and abandoned property within the city during any

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privilege year commencing with the privilege year beginning January 1, 2000, and every

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privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

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or public laws.

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     (g) Cities and towns. Any city or town not previously empowered is empowered to

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impose a tax upon the privilege of utilizing vacant and abandoned property within the city or

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town during any privilege year commencing with the privilege year beginning January 1, 2002,

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and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by

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the general or public laws.

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     (h) Implementing ordinance. Cities and towns that are empowered to impose this tax and

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who choose to impose this tax shall adopt an implementing ordinance. The ordinance shall:

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     (1) Designate a municipal entity responsible for determining which properties are vacant

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and abandoned;

 

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     (2) Establish the mechanism by which the tax is imposed and how the tax is removed

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from the property once the property has been rehabilitated;

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     (3) Designate a reviewing entity to review and approve a development plan submitted by

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a nonprofit housing organization or an abutter;

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     (4) Empower the tax assessor to abate the tax if it is imposed in error or if a nonprofit

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housing organization or an abutter acquires the property for rehabilitation and submits a

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development plan that complies with the provisions of subdivision (i)(2) of this section;

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     (i) Exemptions for abutters and nonprofit housing organizations.

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     (1) The non-utilization tax authorized by this chapter shall not be imposed on property

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owned by an abutter or a nonprofit housing organization if:

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     (i) The abutter or nonprofit housing organization submits a proposed development plan

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which has been approved by the Rhode Island housing resources commission or Rhode Island

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housing and mortgage finance corporation to the reviewing entity;

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     (ii) The proposed development plan contains a reasonable timetable for the development

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or reuse of the property; and

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     (iii) The reviewing entity determines that the proposed development plan is in accordance

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with the approved comprehensive plan of the city or town and approves it.

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     (2) The reviewing entity shall deliver a copy of the approved development plan to the tax

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assessor who shall certify the property as exempt from the non-utilization tax.

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     (3) Failure of the nonprofit housing organization or abutter, without good cause, to carry

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out the development or reuse of the property in accordance with the timetable set forth in the

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approved development plan shall result in the property being subject to the non-utilization tax as

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of the first date of assessment following the expiration of the timetable in the approved

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development plan.

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     (4) The decision of the reviewing entity denying approval of a development plan may be

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appealed as provided in § 44-5.1-6.

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     (j) Exemption for housing agency. The non-utilization tax authorized by this section shall

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not be imposed on property on which the Rhode Island housing and mortgage finance corporation

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holds an interest pursuant to § 44-9-8.3.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- TAX SALES

***

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     This act would give the Rhode Island housing and mortgage finance corporation

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(RIHMFC) the authority to bring foreclosure petitions after one year from the sale of property for

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taxes if the property is foreclosed and no longer owner-occupied or has been abandoned, and

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changes members of the advisory board which provides advice to RIHMFC and exempts

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RIHMFC owned property from being assessed a non-utilization tax.

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     This act would take effect upon passage.

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